Work force development key to growth

By April Wortham Staff Writer

Published: Wednesday, January 25, 2006 at 3:30 a.m.

Last Modified: Tuesday, January 24, 2006 at 11:00 p.m.

MONTGOMERY | Alabama’s transition from an economy reliant on textile and apparel manufacturing to one rooted in the automotive industry has created what some might call an enviable problem: The number of new jobs in the state is growing at a faster rate than the labor force and population.

“Throughout my life, or most of my life, the question has always been, 'Where are the jobs?’ And increasingly, the question has become, 'Where are the workers?’ And now, even more increasingly, the question is 'Where are the workers who have the skills to do the job that I need done?’ " said Tim Alford, director of the Alabama Office of Workforce Development.

Alford was the keynote speaker Tuesday at the 2006 Economic Outlook Conference, which drew about 150 economic, government and business leaders from around the state.

Now in its 17th year, the conference is presented annually by the University of Alabama’s Center for Business and Economic Research with the help of corporate sponsors.

According to the CBER’s 2006 Alabama Economic Outlook, the state’s economy is expected to grow 3 percent this year and 2.9 percent in 2007, after rising an estimated 3.4 percent in 2005.

From September 2004 to September 2005, the number of new jobs in Alabama grew by 24,800, according to the CBER. For 2006 and 2007, total non-agricultural employment is expected to grow by 1.4 percent and 1.2 percent, respectively. Most of those new jobs will be in the service industry, such as healthcare and banking.

On the manufacturing side, automobile manufacturing and related industries will see the most rapid job growth, according to the outlook.

Alabama’s 11 metropolitan areas dominated in 2005 in terms of population and jobs, with 71 percent of the state’s residents living in a metro area and nearly 90 percent of new jobs created between January and September 2005 located in the metro areas.

The Tuscaloosa metro area, which includes Tuscaloosa, Hale and Greene counties, saw the second largest increases in manufacturing jobs last year, behind Montgomery.

Tuscaloosa posted 1,600 new manufacturing jobs for a total of 15,600. Montgomery added 2,400 new jobs, bringing its total to 19,600.

Those increases resulted largely from the expansion of the Mercedes-Benz U.S. International plant in Vance and the opening of the Hyundai assembly plant outside Montgomery in May.

Non-agricultural employment grew in all metro areas, including an increase of 2,800 jobs in Tuscaloosa, bringing the total up to 94,400. Service jobs also increased in every metro area, with Tuscaloosa gaining 500 jobs for a total of 25,700.

“The outlook I’m going to show you today is characteristic of a state that is on the cusp of magnificence. All the indicators show a vibrant state, a growing state. And its future, if it would do one or two things, is absolutely assured," said CBER Director Carl Ferguson.

Vital to sustaining that growth, leaders said, is developing an educated, trained work force that can keep pace with the increasing number of technology-based jobs while also taking the torch from retiring baby boomers.

But with Alabama having one of the nation’s lowest unemployment rates -- below 4 percent at last count -- where will those workers come from?

Alford said plenty of Alabamians are out there who are “underemployed." In other words, with the right training, they could be in high-growth, high-demand, high-paying jobs, just the types of jobs leaders are trying to attract to the state.

“Unemployment is low, but Alabama is full of people looking for better jobs," he said.

There are also untapped pools of workers in what he called “special populations": those with disabilities, new immigrants, out-of-school youth, returning military, those released from the justice system and senior citizens.

Another resource is residents who work out of state. In 2000, 78,200 Alabamians commuted across state borders to their jobs. Compare that to the 41,500 who commuted in-state, he said.

Reach April Wortham at april. wortham@tuscaloosanews.com or (205) 722-0213.

<p>MONTGOMERY | Alabama’s transition from an economy reliant on textile and apparel manufacturing to one rooted in the automotive industry has created what some might call an enviable problem: The number of new jobs in the state is growing at a faster rate than the labor force and population.</p><!-- Nothing to do. The paragraph has already been output --><p>Throughout my life, or most of my life, the question has always been, 'Where are the jobs?’ And increasingly, the question has become, 'Where are the workers?’ And now, even more increasingly, the question is 'Where are the workers who have the skills to do the job that I need done?’ " said Tim Alford, director of the Alabama Office of Workforce Development.</p><p>Alford was the keynote speaker Tuesday at the 2006 Economic Outlook Conference, which drew about 150 economic, government and business leaders from around the state.</p><p>Now in its 17th year, the conference is presented annually by the University of Alabama’s Center for Business and Economic Research with the help of corporate sponsors.</p><p>According to the CBER’s 2006 Alabama Economic Outlook, the state’s economy is expected to grow 3 percent this year and 2.9 percent in 2007, after rising an estimated 3.4 percent in 2005.</p><p>From September 2004 to September 2005, the number of new jobs in Alabama grew by 24,800, according to the CBER. For 2006 and 2007, total non-agricultural employment is expected to grow by 1.4 percent and 1.2 percent, respectively. Most of those new jobs will be in the service industry, such as healthcare and banking.</p><p>On the manufacturing side, automobile manufacturing and related industries will see the most rapid job growth, according to the outlook.</p><p>Alabama’s 11 metropolitan areas dominated in 2005 in terms of population and jobs, with 71 percent of the state’s residents living in a metro area and nearly 90 percent of new jobs created between January and September 2005 located in the metro areas.</p><p>The Tuscaloosa metro area, which includes Tuscaloosa, Hale and Greene counties, saw the second largest increases in manufacturing jobs last year, behind Montgomery.</p><p>Tuscaloosa posted 1,600 new manufacturing jobs for a total of 15,600. Montgomery added 2,400 new jobs, bringing its total to 19,600.</p><p>Those increases resulted largely from the expansion of the Mercedes-Benz U.S. International plant in Vance and the opening of the Hyundai assembly plant outside Montgomery in May.</p><p>Non-agricultural employment grew in all metro areas, including an increase of 2,800 jobs in Tuscaloosa, bringing the total up to 94,400. Service jobs also increased in every metro area, with Tuscaloosa gaining 500 jobs for a total of 25,700.</p><p>The outlook I’m going to show you today is characteristic of a state that is on the cusp of magnificence. All the indicators show a vibrant state, a growing state. And its future, if it would do one or two things, is absolutely assured," said CBER Director Carl Ferguson.</p><p>Vital to sustaining that growth, leaders said, is developing an educated, trained work force that can keep pace with the increasing number of technology-based jobs while also taking the torch from retiring baby boomers.</p><p>But with Alabama having one of the nation’s lowest unemployment rates -- below 4 percent at last count -- where will those workers come from?</p><p>Alford said plenty of Alabamians are out there who are underemployed." In other words, with the right training, they could be in high-growth, high-demand, high-paying jobs, just the types of jobs leaders are trying to attract to the state.</p><p>Unemployment is low, but Alabama is full of people looking for better jobs," he said.</p><p>There are also untapped pools of workers in what he called special populations": those with disabilities, new immigrants, out-of-school youth, returning military, those released from the justice system and senior citizens.</p><p>Another resource is residents who work out of state. In 2000, 78,200 Alabamians commuted across state borders to their jobs. Compare that to the 41,500 who commuted in-state, he said.</p><p>Reach April Wortham at april. wortham@tuscaloosanews.com or (205) 722-0213.</p>